- Realized, a wealth management platform for investment
properties that simplifies a complicated tax benefit, has raised $6
million in a Series A round. The startup’s revenue has doubled over
the past year, cofounder and CEO David Wieland told Business
The startup wants to grow its marketplace for so-called
1031 exchanges — a time-bound process that lets investors defer
capital gains taxes when selling property.
Realized, founded in 2016, says it has facilitated $350
million in transactions.
- The funding came from Rice Park Capital, a
recently-formed fintech and proptech venture fund, and Calibrate
Ventures, founded by two venture veterans. One of the co-founders
of Calibrate, Kevin Dunlap, invested in
Dollar Shave Club and was on the board
of Ring before it was bought by Amazon.
wave of money has been flowing into startups that are looking
to put a tech spin on old-school real estate
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Realized, a marketplace to help people sell investment
properties without taking an immediate tax hit and re-invest in
commercial real estate portfolios, just raised $6 million in a
Series A round.
A wave of money has been flowing into companies that are looking
to put a tech spin on real estate dealings, including
brokerages like Compass, startups that help put together cash
buy and sell residential real estate, and even firms that
finance upfront costs for renting coworking spaces.
Realized co-founder David Wieland told Business Insider that the
startup’s typical client is “the millionaire next-door”: an
investor with an average net worth of $1 million to $5 million who
has a large portion of wealth tied up in real estate, and needs to
adjust their strategy to prepare for retirement.
The company said it connects investors with real estate
operators seeking co-investment capital, and that it has
facilitated almost $350 million in real estate transactions since
its 2016 launch. It declined to give a valuation tied to its latest
round of funding.
Realized wants to use the fresh funding to expand its technology
and team to sign up family office investment managers, investment
advisers, CPAs, and attorneys to the platform. Realized declined to
disclose the number of advisers that it is already working
The $6 million funding was led by Calibrate Ventures, an
early-stage venture fund with $80 million in capital commitments
co-founded in 2017 by Kevin Dunlap and Jason Schoettler. They have
previously led investments in Dollar Shave Club, Ring and
Chegg. Dunlap was also on the board of doorbell-camera startup Ring
before it was bought
by Amazon in 2018.
“Customers are coming back multiple times to transact and
referring their friends and family,” said Dunlap. “That’s when you
know it’s really working.”
Rice Park Capital, a recently-formed fintech and proptech
venture fund founded by a former chief investment officer
for Blackstone’s residential mortgage REIT, also joined the
When Wieland spoke to Business Insider, he said that Realized
was searching for guidance and partnership with the Series A. The
company’s revenue has doubled over the past year, and the startup
has had a “significant positive” EBITDA for a few years, he
Wieland and Realized co-founder David Dahill saw an opportunity
for creating a marketplace for real estate securities to make
investments for smaller investors less time-intensive. The
service focuses on so-called 1031 exchanges, a strategy that allows
allows a real estate investor to reinvest money from one property
into another of equal or greater value while deferring the hit from
capital gains taxes on the first sale.
The 1031 exchange has time constraints. To get the benefit, an
investor would have to notify the IRS of the property they intend
to purchase within 45 days of selling their previous property, and
have the whole exchange completed in 180 days.
“The next best alternative to not meeting that deadline is
paying taxes,” said Wieland. Realized instead reinvests the money
into a portfolio of diversified properties, which it says is a
simpler process than finding an individual investment with the same
or higher value in only 45 days.
The portfolios are structured as Delaware Statutory Trusts, the
industry standard for 1031 exchanges, and one trust can encompass
investments in dozens of properties across multiple asset classes.
Realized charges a fee for the transaction, but declined to
disclose exact terms.